Gold prices rise slightly as investors await US rate outlook

Gold prices edged higher on Monday as investors awaited further signals on the U.S. Federal Reserve's interest rate decisions and President-elect Donald Trump's tariff policies, which could impact the metal's 2025 outlook.

Spot gold was up 0.1% at $2,622.74 per ounce as of 0506 GMT. U.S. gold futures gained 0.1% to $2,635.10, News.Az reports, citing Reuters.

The dollar index has been rather flat, helping gold maintain its sideways movement, said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

Markets are now preparing for major U.S. policy shifts, including potential tariffs, deregulation and tax changes, in 2025 once Trump returns to the White House in January.

Bullion prices have gained more than 27% so far this year and scaled an all-time peak of $2,790.15 on Oct. 31, fuelled by significant Fed rate easing, including a jumbo cut in September, along with heightened geopolitical uncertainties.

Gold is considered a hedge against geopolitical turmoil and inflation.

The U.S. central bank has reduced rates by 100 basis points this year but has hinted at fewer cuts in 2025. Higher rates reduce the non-yielding asset's appeal.

Spot silver added 0.2% to $29.44 per ounce, platinum edged higher by 0.3% to $922.30, having hit an over three-month low on Friday.

Palladium climbed 0.4% to $915.19.

News.Az